Tuesday, October 7, 2008

AIG - In a Hole, Still Digging

Fox News has a splendid feel-bad story about some of AIG's post-bailout hi jinx. If you believe as I do that it wasn't a bailout but a government takeover, it doesn't matter. Keep reading.

The committee on Oversight and Government Reform held a hearing on Tuesday at 10:00 a.m. Eastern time. to address and examine downfall of AIG...

One of the items discussed was AIG’s expenditure of $440,000 for a corporate retreat at the St. Regis Monarch Beach resort in Los Angeles, Calif. These funds were spent on Sept. 22, a week after the Federal Reserve extended an $85 billion emergency loan to AIG...

According to the receipt from the St. Regis, the eight-day company retreat was a lavish one -- $139,000 was spent on hotel rooms, while even more money -- $147,301 -- was spent on banquets. Another $23,380 was spent on undisclosed spa treatments and another $6,939 was spent on golf. A full $9,980 was spent on room service and food and cocktails at the hotel lounge.

Somebody will continue to have some explaining to do, including the U.S. government which kind of owns AIG now.